Additionally, we heard comments from Merkel's CDU party that Germany has ’reached the limit of its capacity‘ and may veto any additional aid if Greece does not fulfil its obligations, serving further reminder that Germany’s patience is wearing thin in relation to many of its European brethren. On the other side of the Atlantic, San Francisco Fed President John Williams, a voting member of FOMC, said that he now supports another round of an ’open-ended‘ QE, echoing comments of his Boston counterpart, Eric Rosengren. Expectations of imminent central bank action (in some capacity) from the Fed, the ECB and even the PBOC (after Friday’s weak trade balance numbers) are underpinning current market sentiment.

The downside to this, is that any failure to deliver is likely to be met with immense disappointment and a sharp reversal of recent gains we have seen across equities and risk currencies. Having ended Friday’s Australian session around the 1.2290 level, the euro bounced around before finishing US trade essentially unchanged. Upon resuming for Asian trade the euro has drifted modestly to be currently in low-1.2270s.